Churn Prevention Software

When the problem is customer dissatisfaction, the only viable solution is churn prevention. And, since there’s no such thing as a healthy business without loyal customers, pinpointing the root cause of dissatisfaction and keeping customers coming back for more are the tricks set to shape up into key priority for any business.

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How to choose the best online CRM software

Why Churn Prevention Is the New Customer Acquisition

Churn management is not a walk in the park.

Your customers are changing at a spinning speed, migrating to digital and social on a large scale. This new business environment imposes new business rules, the main of which urges organizations large and small to rethink their customer acquisition strategies and move along to a more reliable routine.

In today’s age, the cost of acquiring a new customer is far greater than the cost of retaining one.

The Importance of Managing Customer Churn

So, let’s do the math then.

If you don’t prevent a particular customer from leaving, your expenses might be higher than your profit. And, this includes more than the direct loss of revenue – if that particular customer has been with you for only a short time, there’s a thin chance you’ll be able to pay back their acquisition cost.

Simply put, acquiring that customer might actually turn out to be a major loss of investment.

This technique is all about impeding that loss.

Bpm’online software will help you segment customers and identify tentative ones long before they abandon you.

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What Does Churn Prevention Mean?

A customer is labeled as churned as soon as they stop interacting with your business for a longer period of time.

Customer churn thus refers to a scenario in which a customer has gone silent, whether because they no longer need your products or services, or because they’ve already found them elsewhere.

The set of practices and tools that can be used for predicting and avoiding this scenario is called churn prevention.


What Does Churn Rate Measure?

A company’s churn rate can be described as a measurement of its health.

At the same time, it is an indicator of the changing needs of your customers and a reliable signal for the retention strategy gone awry.

Since churn rate directly affects your company’s overall ROI, it can be said that the effort you put in foreseeing your customers’ behavior and stopping them from cutting ties with your brand equals your success rate.

Because, seeing them leaving foreshadows the beginning of the end for your company.

As the only steadfast precautionary measure, this technique should be key goal of every business.

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What Is the Ideal Churn Rate?

You don’t need a fancy new tool to calculate your company’s churn rate, but you certainly need it for keeping it below the average. The basic calculation is here simple and straightforward – just subtract the number of customers you currently have from the one you’ve gauged the month or week before.

When you convert that into percentage, the result should not be higher than 5%.

Anything above this average should be seen as a red flag. In theory, it means that you need to reconsider your current techniques for tailoring customer experiences, starting from your unique selling points and ending with your customer service. In practice, it means that you need some help.

That’s exactly where bpm’online Churn Retention Software comes in, improving your pipeline, sales tactics, and lead qualification.

The Predicament of Predicting Churn

Predicting churn is a challenging task, especially without any automation to help you out.

There’s a myriad of factors that influence customers’ decisions, but they are luckily all measurable. Both the risk and the timing of churn can be determined in early stages of customers’ journey, simply by looking at data and hard facts that can be ascribed to every lead and at each opportunity stage.

The tricky part is that you cannot monitor, understand, and analyse every piece of intelligence that your company receives through numerous interactions with its customers, at least not without a reliable tool. That’s why our software offers features for continual tracking, assessment, and analytics.

Understanding What Works and What Doesn’t


Still, the assessment of risk is only one part of the process. Remember, the entire point of churn prevention is to stop customers from leaving your business, which means that predicting their departure with accuracy is not enough.

Churn retention should also help you understand how to convince them to stay.

Our software does this by thoroughly analysing conversion between stages, thus letting you know which sales tactics work for a particular audience segment, and which don’t. It also tracks KPIs of individual salesman in your team, allowing you to determine what account types to assign to whom.

With lead and customer data being gathered and stored within the system, you can easily keep your records up to date when negotiating, and use them for establishing the best sales follow-up approach.

Building a Predictive Behaviour Modelling System

By using our Lead Qualification tool, your company can learn to calculate the customer lifetime value of every individual customer.

Not only will you be able to save your time and money by eliminating cold leads early on, but you’ll also be able to conduct further segmentation of the ones that are left behind.

In time, your entire customer base will grow susceptible to a predictive behavior modeling system that will reach into every nook and cranny of your customers’ needs, habits, and preferences.

Leveraging Churn Analysis with bpm’online

If you can analyse both your company’s performance at each opportunity stage and your competitors’ strengths and weaknesses, evaluate your pipeline integrity, identify bottleneck that thwart your progress, and keep a close eye on your salespeople at all times, your churn is already half protected.

The other half refers to lead qualification and actionable customer analysis, both of which our Churn Prevention Software offers too. Equipped with these two types of intelligence, your company can instantly determine precisely what sales tactic to use for keeping its churn rate well-above the 5%.

And, this applies to each at-risk customer individually.

Ready to get started?

Bpm’online offers a number of various editions and pricing, which allows you to select the edition that best fits your business model.

Should Your Business Use CRM?

No matter the size of your business, CRM provides consistency and better decision making. Even if you have a small base of consumers, CRM can function as a simple management software that gradually increases the value of your organization.

All in all, the CRM system is a strategic tool that will mark the future of business. The industry has already recognized the potential CRM can offer to businesses, especially regarding customer satisfaction. Therefore, there is no question whether a business should apply a CRM system because it’s only a matter of time when you will have to incorporate this system if you wish to keep up with market demands.

Bpm’online has been widely recognized by key industry analysts, receiving multiple awards.

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Read our CRM Buyer’s Guide and choose the best software!